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July 9, 2008    DOL Home > News Release Archives > OSEC/OPA 1995   

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Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

OFFICE OF PUBLIC AFFAIRS

HIGHLY SKILLED WORKERS LEFT VULNERABLE TO TEMPORARY FOREIGN WORKFORCE IN HOUSE BILL, LABOR SECRETARY ROBERT B. REICH SAYS

Tues., Oct. 24, 1995

For more information call: 202-219-8211.

Labor Secretary Robert B. Reich said the immigration bill being considered today by the House Judiciary Committee fails to protect high-skilled American workers from low-wage, foreign competition.

He reiterated his call for reform of the temporary foreign worker program, called H-1B, so that no U.S. workers could lose their jobs to temporary foreign worker replacements.

"It should be against the law for any employer to lay off a U.S. worker to make room for a temporary foreign worker," Reich said. "Anything less than that will leave thousands of critical U.S. jobs at risk."

The House Judiciary Committee is expected to continue marking up its immigration bill today. Reich urged its members to include provisions he has recommended to protect high-skilled American jobs.

In testimony before the Senate and House, Reich and the labor department have recommended three changes to the current H-1B statutes. First, the law must be reformed to prevent any U.S. firm from firing or laying off a U.S. worker in order to replace that worker with a temporary foreign worker. Secondly, all U.S. companies hiring temporary foreign workers must be required to make efforts to recruit and retain U.S. workers first. Finally, Reich has asked that Congress shorten the length of the temporary worker visa to three years from the current six.

"In its current form, the temporary foreign worker program has been turned into a sham," Reich said. "Highly skilled American workers are the victims. Today, too many companies are reaping huge profits from exploiting foreign workers and laying off skilled American workers."

The House committee legislation currently includes a measure designed to stem H-1B abuses. But Reich said that measure does not go far enough to end the importation of H-1B workers. The House committee proposal would require that employers pay foreign workers 110 percent of the prevailing wage for the occupation they would be entering. The purpose is to end the low-wage incentive for bringing in temporary foreign workers.

But Reich says even with the premium as a penalty, no U.S. company should be given the option of replacing a U.S. worker with a temporary foreign worker. Instead, U.S. firms should be encouraged to improve the skills of American workers.

"This measure does not address the fundamental problem of H-1B," Reich said. "Essentially, this bill will allow employers to purchase a license to lay off U.S. workers by paying a premium to temporary foreign workers.

"A U.S. employer could still lay off U.S. workers and replace them with H-1B workers. I simply do not believe that this is right. An employer in this country not only does not have to test the domestic labor market for the availability of qualified U.S. workers before gaining access to them, but is actually able to lay off U.S. workers to replace them with temporary foreign workers. This is exactly what is happening now. Our public policy tolerates it, perhaps encourages it. This must change."


Archived News Release--Caution: information may be out of date.




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